DealersEdge Professional Forums

Hello Everyone,

I am wondering what others are doing for markup on shop supplies and chemicals such as glass cleaner, brake cleaner, tubes of rtv sealant, etc...
We do not currently mark up any chemicals billed to shop supplies and I feel that parts should get something for ordering, stocking, and handling
these chemicals. We bill some chemicals on RO's if it can be justified for the job such as a full brake job gets billed a can of brake cleaner on RO
and those chemicals are charged out at retail.

The items I am thinking about is the cans of cleaners, sealants, etc that goes to the technicians toolboxes for their day to day use. Should I be
marking up these chemicals and if so how much???

For most of the items we have a shop ticket we charge them to each month. On customer pay jobs we charge brake clean out as a part on the job. Too bad GM won't pay for the chemicals you need to get a job ready to do right like brake clean.

We bill any supplies that are in inventory @ 25% over cost. You have to cover expenses and generally pay out commissions on these items. We order, stock and store a lot of the expendables for the shop that are NOT in inventory, with no resale or markup so I think it's a fair trade. When the shop or a tech has to eat a part however, I will work with the Service manager for sure.
But does your shop give you a labor discount when they charge something to Parts Policy? Maybe, but surely not at technician labor cost.

camaroman wrote:For most of the items we have a shop ticket we charge them to each month.

Same here.
There should be a charge on repair orders for shop supplies, and the money collected from that pays for the shop ticket.
This should be profitable for both the parts and service department.

Cost + 67 here. Or straight list on all internals.

Anything that requires parts personnel to order, go get etc for the service department is sold at cost +30%.

This involves but is not limited to: Fluids with GM Part Numbers, Zip Ties, Nuts & Bolts, Batteries, Brake Clean, Splash, Wheel Weights, etc.

Basically if it requires our time, it gets marked up 30%.

The only exception to this is toilet paper and paper towels, as we order all that but is billed at cost to the whole dealership.

possum wrote:But does your shop give you a labor discount when they charge something to Parts Policy? Maybe, but surely not at technician labor cost.

What would an example of this be?

mightytitan9 wrote:

possum wrote:But does your shop give you a labor discount when they charge something to Parts Policy? Maybe, but surely not at technician labor cost.

What would an example of this be?

If the parts advisor handed out incorrect part, tech installs it only to then find out it is incorrect (lets say purge solenoid) the tech has to take wrong part off and put new part on. This is only after having to diagnose problem again. Tech should not have to eat this as it was not his /her fault. Our SM will work with us most of the time.

I think you'd better marke up these chemicals， but I am not quite sure about their price.

Depends on a few things... GM chemicals vs shop supply type stuff, and whether the RO is warranty or customer pay/internal.

GM chemicals (all inventoried in parts 242/244) on warranty repairs: these go on a parts invoice and are charged to the service at cost plus 20% noting the RO# on the counter ticket
GM chemicals (all in 242/244) on customer pay and internal: these go on the repair order and sold at list for CP and plus 20% for internal.

Shop supplies are charged to 61D when rec'd from the vendor.

Shop supplies on warranty are absorbed by the service dept.: Techs supply requisitions signed by the shop foreman for certain supplies ($$$$).
Shop supplies on CP and internal: these have system part numbers associated with these supplies, some specific (ie 7447 for scratch pads) and some general (connector, weights, etc...). The SM and myself have set-up prices for these supplies and we use source acct'ing to have these supplies, when charged on an RO relieve 61D.

While there is some work on our side without compensation, much like the LPO scenario, we in parts are much better at keeping the needed supplies on the shelf and ready for use. We do not get involved in wash rack supplies, which seems to be more of an expense than shop supplies.

it is not ideal, but it is a very good system for the back-end as a whole, or so I think.

~ gt